Here you will find specific and fiscal information related to vehicles.
Luxembourg reforms taxation of company cars
Scheme B
On January 1, 2023, the new regulation (Regulation B) for calculating the fringe benefit came into force. It includes new CO2 emission thresholds for combustion/hybrid vehicles and a double category for 100% electric vehicles according to their consumption.
In which cases?
- Vehicles ordered as of 01/01/2022 and registered in 2022.
- Vehicles ordered on or after 01/01/2022 and registered between 01/01/2023 and 31/12/2024.
- Vehicles ordered before 31/12/2024 and registered before 31/12/2025.
From 2025, the imputed income will be taxed at a flat rate of 1% to 1.2% depending on consumption for 100% electric cars and 2% for other types of internal combustion engines.
For more information, you can view the official details directly.
New measures for subsidies for electrified vehicles
The "Klimabonus Mobilitéit" scheme is the government's key element in decarbonizing private mobility. It not only promotes pure electric and hydrogen fuel cell motor vehicles as well as bicycles and pedal-assist bicycles, but also the installation of private charging stations for electric vehicles.
Since its introduction in 2020, the scheme has already awarded more than 3,500 grants for private charging stations, contributing to the decarbonization of the transport sector.
On August 4, 2023, the Grand-Ducal Regulation of July 29, 2023, amending the Grand-Ducal Regulation of August 19, 2020, establishing financial support for the installation of private charging stations for electric vehicles, was published in the Official Gazette. This amendment to the regulatory framework has the following objectives:
- Extend the aid scheme until December 31, 2024;
- Facilitate the installation of charging stations in owner communities;
- Expanding the scope of beneficiaries of the aid;
- Introducing the possibility of granting the aid through a leasing company.
Extension of the grant scheme until December 31, 2024
The grant scheme was extended by 18 months until December 31, 2024. It is now aligned with the deadline for initial registration of financially assisted 100% electric vehicles.
Please find the details of the grants as well as the conditions for their use on the website of the Luxembourg government:
Régime Klimabonus Mobilitéit: prolongation et extension du régime d’aides financières pour l'installation de bornes de charge privées pour véhicules électriques - gouvernement.lu // Le gouvernement luxembourgeois
Neue Massnahmen: elektrifizierte Fahrzeuge
Die Regelung "Klimabonus Mobilitéit" ist das Schlüsselelement der Regierung zur Dekarbonisierung der privaten Mobilität. Es fördert nicht nur reine Elektro- und Wasserstoff-Brennstoffzellen-Motorfahrzeuge sowie Fahrräder und Fahrräder mit Tretunterstützung, sondern auch die Installation von privaten Ladestationen für Elektrofahrzeuge.
Seit ihrer Einführung im Jahr 2020 wurden im Rahmen der Regelung bereits mehr als 3.500 Finanzhilfen für private Ladestationen gewährt und damit ein Beitrag zur Dekarbonisierung des Verkehrssektors geleistet.
Am 4. August 2023 wurde die großherzogliche Verordnung vom 29. Juli 2023 zur Änderung der großherzoglichen Verordnung vom 19. August 2020 zur Einführung einer finanziellen Unterstützung für die Installation von privaten Ladestationen für Elektrofahrzeuge im Amtsblatt veröffentlicht. Diese Änderung des Rechtsrahmens hat folgende Ziele:
- Verlängerung der Beihilferegelung bis zum 31. Dezember 2024;
- Erleichterung der Installation von Ladestationen in Eigentümergemeinschaften;
- Erweiterung des Kreises der Beihilfeempfänger;
- Einführung der Möglichkeit, die Beihilfe über eine Leasinggesellschaft zu gewähren.
Verlängerung der Finanzhilferegelung bis zum 31. Dezember 2024.
Die Finanzhilferegelung wurde um 18 Monate bis zum 31. Dezember 2024 verlängert. Sie orientiert sich nun an der Frist für die Erstzulassung von finanziell geförderten 100%igen Elektrofahrzeugen.
Bitte finden Sie die Einzelheiten zu den Zuschüssen sowie die Bedingungen für deren Inanspruchnahme auf der Website der luxemburgischen Regierung:
New measures for subsidies for electrified vehicles
On 9 March 2022, the Government Council adopted a draft Grand-Ducal regulation extending the "Clever fueren" financial aid scheme for a further 24 months until 31 March 2024, under the following conditions
100% electric vehicles (BEV)
All 100% electric vehicles with a fuel consumption of less than 18 kWh/100 km, or less than 20 kWh/100 km with a maximum net power of the propulsion system of less than 150 KW, are subsidised by the State through a premium of €8,000.
All 100% electric vehicles, with a fuel consumption above 18kWh/100km, are subsidised by the State through a premium of 3.000€.
All vehicles must be ordered before 31 March 2022 and registered by 31 December 2022 at the latest in order to benefit from the state subsidy.
On 9 March 2022, the Government Council adopted a draft Grand-Ducal regulation extending the "Clever fueren" financial aid scheme for a further 24 months until 31 March 2024, under the following conditions
100% electric vehicles (BEV)
All 100% electric vehicles with a fuel consumption of less than 18 kWh/100 km, or less than 20 kWh/100 km with a maximum net power of the propulsion system of less than 150 KW, are subsidised by the State through a premium of €8,000.
All 100% electric vehicles, with a fuel consumption above 18kWh/100km, are subsidised by the State through a premium of 3.000€.
All vehicles must be ordered before 31 March 2022 and registered by 31 December 2022 at the latest in order to benefit from the state subsidy.
Plug-In-Hybrid cars (PHEV)
The incentives for Plug-In-Hybrid Vehicles (PHEV) are discontinued, but the period allowed for the entry into service of vehicles eligible for an incentive (only for orders placed in 2021 and whose initial delivery was scheduled for 2021) is extended until 30 September 2022.
100% electric vans (BEV)
All 100% electric vans, regardless of their consumption, are subsidised by the State through a bonus of €8,000.
Hydrogen vehicles
Are subsidised by the State through a premium of €8,000
These new provisions will apply to vehicles ordered between 1 April 2022 and 31 March 2024 and which are first put into circulation before the end of 2024. The minimum holding period of the vehicle and the leasing contract is 12 months.
Please find the details of the subsidies as well as the conditions of application on the website of the Luxembourg government:
Measures for subsidies for electrified vehicles till March 2021
On 24th March 2021, the Luxembourgish government announced the extension of the incentives for electrified vehicles until 31 December 2022 inclusive, under the following conditions:
100% electric vehicles (BEV)
All 100% electric vehicles with a consumption of less than 18kWh/100km will be subsidized by the government through a premium of €8,000.
All 100% electric vehicles, with a consumption above 18kWh/100km, are subsidized by the government through a premium of 3.000€.
All vehicles must be ordered before 31 March 2022 and registered by 31 December 2022 at the latest in order to benefit from the governmental subsidy.
Voitures Plug-In-Hybrid (PHEV)
The premiums for Plug-In-Hybrid (PHEV) vehicles with a CO2 rate below 50 g/km are reduced to €1,500 and only apply to vehicles ordered by 30 September 2021 and registered by 31 December 2021 at the latest.
100% electric vans (BEV)
All 100% electric vans, regardless of their consumption, are subsidized by the government through a premium of €8,000, if ordered before 31 March 2022 and registered by 31 December 2022 at the latest.
Please find the details of the subsidies as well as the terms and conditions on the website of the Luxembourg government:
